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Virgin Australia ends Etihad partnership as it eyes a strategic alliance with Qatar Airways

Virgin Australia will officially end its long-standing partnership with Etihad Airways on June 1, 2025, as it prepares for a transformative alliance with Qatar Airways. The decision, announced by Etihad, “reflects a divergence in the strategic direction of the respective airlines” and will terminate existing codeshare and frequent flyer agreements between the carriers.

The move paves the way for Qatar Airways’ proposed 25% investment in Virgin Australia, pending regulatory approval from the Australian Competition and Consumer Commission (ACCC) and the Foreign Investment Review Board. If approved, Qatar Airways would become Virgin Australia’s exclusive interline, codeshare, and loyalty partner in the Middle East and Türkiye. This partnership would reshape Virgin’s international network and align its services more closely with Qatar Airways’ extensive global reach.

As part of this potential alliance, Virgin Australia will cease codeshare agreements with other airlines for international travel to, from, or within the Middle East, Europe, and Africa. While there has been no official statement from Singapore Airlines, the partnership would likely limit Virgin’s codeshare routes with Singapore Airlines to destinations within Asia and India, positioning Qatar Airways as Virgin’s primary partner for travel to Europe, the UK, and Africa.

The ACCC’s filings offer a detailed look at how this partnership would redefine Virgin Australia’s international strategy, including a mapped overview of its restructured partner network. The proposed collaboration reflects Virgin’s strategic push to bolster its international footprint, offering customers enhanced travel options and seamless connectivity through Qatar Airways’ global network.

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